Éric Le Gentil, Mercialys’ Chairman and CEO: “In the first quarter of
2018, Mercialys delivered results building on its outstanding
operational trends, with +3.3% organic growth, including the significant
upturn in indexation. This level of performance is in line with the
full-year objectives the Company has set for 2018.

We have continued to refine our customer knowledge through our
powerful digital marketing ecosystem and sustained growth in our
qualified database, enabling an increasingly advanced personalization of
commercial offers to help satisfy consumers’ needs. This is contributing
to the positive perception and the level of footfall in Mercialys
shopping centers, thanks to continuity between their physical and online
buying journey, supporting the sales generated by retailers.

We have also maintained our very strong lettings performance, with
new iconic and differentiating retailers signed up.

In line with these positive trends ,Mercialys is on track to achieve
its objectives for 2018, with organic rental income growth excluding
indexation of over +2%, FFO growth of at least +2% excluding the impact
of refinancing the bond maturing in 2019, and dividend growth of at
least +2%, ranging from 85% to 95% of 2018 FFO”.

I.Change in rental revenues

Mercialys once again confirmed its operational excellence in the first
quarter of 2018, delivering like-for-like growth of +3.3%
including indexation (+2.5% excluding indexation). Invoiced rents came
to Euro 45.2 million, with a slight contraction of -1.1% year-on-year
due to the asset disposals carried out in 2017.

(In thousands of euros)

Cumulative to end- March 2017

Cumulative to end-March 2018

Change (%)

Like-for-likechange (%)

Invoiced rents

45,689

45,174

-1.1%

+3.3%

Lease rights

511

387

-24.3%

Rental revenues

46,200

45,560

-1.4%

The change in invoiced rents reflects the following factors:-
Excellent organic growth: +3.3 points,- Impact of assets
sold in 2017: -3.3 points,- Other effects, primarily
including strategic vacancy linked to current redevelopment programs: -1.1
point.

Like-for-like, invoiced rents are up +3.3%, including:+2.2%
for actions carried out on the portfolio, with a similar performance
to the first quarter of 2017 as well as the whole of the past year. This
progress factors in the positive impact of the sites redeveloped in
2017, on surfaces previously held by Mercialys for over 12 months
(including the nine hypermarket transformations and the Morlaix, Rennes
and Saint-Étienne Monthieu redevelopments completed in 2017),+0.3%
for the development of the Casual Leasing business, with this offer
now fully integrated into Mercialys’ letting strategy, paving the way
for the gradual transformation of a certain number of short-term leases
into standard commercial leases,+0.8% for indexation,
significantly higher than previous years.

Lease rights and despecialization indemnities received over the
period1, after factoring in the deferrals required under
IFRS, came to Euro 0.4 million, compared with Euro 0.5 million for the
first quarter of 2017.

Rental revenues therefore represent Euro 45.6 million at
March 31, 2018, down -1.4% from March 31, 2017.

The G La Galerie digital ecosystem confirms its strength and
continues to be ramped up, with further significant growth in the
customer database and work to enhance the qualification of these
contacts. Mercialys is able to relay retailers’ offers with better
targeting and growing efficiency, while the personalized text message
and emailing system, adapted for each center and customer profile,
achieved an opening rate of over 40% with the latest campaigns.

The benefits of the single brand and pooled marketing spending are
reflected in a +15% increase in footfall across the websites for all the
centers for the first quarter of 2018 compared with the first quarter of
2017. 75% of this traffic has been achieved thanks to the optimization
of Mercialys’ natural referencing.

Alongside this, Mercialys is continuing to diversify the services
offered on La Galerie des Services, its BtoB digital services platform.
The recent introduction of the Retailer Card (Carte Commerçants)2
and Mystery Shopper (Visites Mystères)3 offers has further
strengthened the existing range of 30 services, fully accessible online,
some of which, such as Special Deals (Bons Plans), are proving very
popular with retailers.

This dynamic BtoB and BtoC omnichannel approach is helping Mercialys’
centers to stand out even more effectively in terms of their offering,
characterized by an in-depth understanding of expectations across the
trading areas, a proven ability to satisfy individual and specific
customer needs, and a wide selection of services for retailers and end
customers.

For the start of 2018, Mercialys’ shopping centers once again show
operational performance levels that are significantly higher than the
national average.

Over 12 cumulative months to end-February 2018, the sales generated
by retailers in Mercialys shopping centers4 continued to
clearly outperform the overall national shopping center market (CNCC5),
coming in +330 basis points higher with +3.0% growth for the period.

In the first quarter of 2018, footfall in Mercialys shopping centers4
outperformed the national market (CNCC5) by +340 basis
points, with +3.0% growth versus the first quarter of 2017, compared
with a -0.4% contraction for the CNCC.

The appeal of Mercialys’ centers is enabling the letting teams to
maintain their excellent performance levels. For instance, the first
quarter of 2018 saw leases signed with iconic retailers like New
Yorker for the Brest shopping center, Tally Weijl in
Sainte-Marie, La Fnac in Besançon and Marseille Plan de Campagne, La
Chaise Longue and Boticinal in Marseille La Valentine, Brut
Butcher in Annemasse, Fréjus and Montpellier, and Orange in
Angers.

These brands are making it possible to further diversify the
merchandising mix at these sites and strengthen their commerciality,
contributing to their appeal and their sustainable outperformance.

In line with the target published in February 2018, Mercialys has
completed the early refinancing of the Euro 479.7 million bond issue due
to mature in March 2019, with a coupon of 4.125%.

On February 20, 2018, the Company successfully placed a Euro 300 million
bond issue with a maturity of February 2026 (i.e. eight years) and 1.80%
coupon. This issue was 2.5x oversubscribed by a diverse investor base.

This operation followed the Euro 150 million bond issue with a November
2027 maturity (i.e. 10 years), finalized in November 2017 as part of a
private placement, with a 2.0% coupon.

These new financing lines, raised under very favorable conditions, have
helped extend the average maturity of debt and achieve a very
significant reduction in Mercialys’ financing costs from 2019. After
setting up hedging instruments, the 2018 FFO impact of the carrying cost
for these new financing facilities, representing a total of Euro 450
million, is estimated at Euro 4.0 million. This cost is significantly
lower than the initial estimate of Euro 6.0 million announced in
February 2018.

IV.Payout of Euro 0.68 per share on May 3, 2018

On February 14, 2018, Mercialys’ Board of Directors proposed, subject to
approval by the General Shareholders’ Meeting on April 26, 2018, to set
the dividend for 2017 at Euro 1.09 per share (including the interim
dividend of Euro 0.41 per share already paid in October 2017), up +2.8%
from the dividend for 2016.

This represents a yield of 5.3% in relation to Mercialys’ EPRA NNNAV at
December 31, 2017 (Euro 20.54 per share) and 5.9% compared with the
year-end 2017 share price.

After deducting the interim dividend already paid out, the balance on
this dividend represents Euro 0.68 per share. It will be paid in full in
cash on May 3, 2018.

Mercialys is one of France’s leading real estate companies, focused
exclusively on retail property. At December 31, 2017, Mercialys had a
portfolio of 2,185 leases, representing a rental value of Euro 178
million on an annualized basis. At December 31, 2017, it owned
properties with an estimated value of Euro 3.7 billion (including
transfer taxes). Mercialys has had “SIIC” real estate investment trust
(REIT) tax status since November 1, 2005 and has been listed on Euronext
Paris Compartment A (ticker: MERY) since its initial public offering on
October 12, 2005. At December 31, 2017, there were 92,049,169 shares
outstanding.

IMPORTANT INFORMATION

This press release contains certain forward-looking statements
regarding future events, trends, projects or targets. These
forward-looking statements are subject to identified and unidentified
risks and uncertainties that could cause actual results to differ
materially from the results anticipated in the forward-looking
statements. Please refer to the Mercialys shelf registration document
available at www.mercialys.com
for the year ended December 31, 2017 for more details regarding certain
factors, risks and uncertainties that could affect Mercialys’ business.
Mercialys makes no undertaking in any form to publish updates or
adjustments to these forward-looking statements, nor to report new
information, in case new future events or any other circumstances might
cause these statements to be revised.

MERCIALYS RENTAL REVENUES

2017

Mar 31, 2017

Jun 30, 2017

Sep 30, 2017

Dec 31, 2017

Q1

Q2

Q3

Q4

Invoiced rents

45,689

92,098

136,407

183,514

45,689

46,409

44,309

47,107

Lease rights

511

1,020

1,426

1,805

511

509

406

379

Rental revenues

46,200

93,118

137,833

185,318

46,200

46,918

44,715

47,486

Change in invoiced rents

1.6%

0.2%

-0.7%

-2.2%

1.6%

-1.0%

-2.6%

-6.2%

Change in rental revenues

1.4%

0.1%

-0.8%

-2.4%

1.4%

-1.2%

-2.7%

-6.5%

2018

Mar 31, 2018

Jun 30, 2018

Sep 30, 2018

Dec 31, 2018

Q1

Q2

Q3

Q4

Invoiced rents

45,174

45,174

Lease rights

387

387

Rental revenues

45,560

45,560

Change in invoiced rents

-1.1%

-1.1%

Change in rental revenues

-1.4%

-1.4%

1 Lease rights received as cash before the impact of
deferrals required under IFRS (deferral of lease rights over the firm
period of leases)2 Digital card made available to staff
from retailers in the shopping centers, enabling them to benefit from
promotional offers in their center3 Service to put
retailers in contact with specialist customer satisfaction survey and
mystery shopper companies with a view to improving commercial performance4
Mercialys’ large centers and main neighborhood shopping centers based on
a constant surface area, representing c. 85% of the Company’s shopping
centers value (scope as reported to the CNCC by Mercialys)5
CNCC index – all centers, comparable scope